Extreme weather, IT investment, and corporate sustainability

Abstract The capacity of businesses to withstand the impacts of extreme weather has become a subject of concern in both theoretical and practical terms. This growing focus is driven by the occurrence of increasingly frequent extreme weather events, both natural and human-induced, which have had a si...

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Main Authors: Peinan Ji, Linke Guo, Xiangbin Yan, Lianchao Yu
Format: Article
Language:English
Published: Springer Nature 2025-06-01
Series:Humanities & Social Sciences Communications
Online Access:https://doi.org/10.1057/s41599-025-05275-z
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author Peinan Ji
Linke Guo
Xiangbin Yan
Lianchao Yu
author_facet Peinan Ji
Linke Guo
Xiangbin Yan
Lianchao Yu
author_sort Peinan Ji
collection DOAJ
description Abstract The capacity of businesses to withstand the impacts of extreme weather has become a subject of concern in both theoretical and practical terms. This growing focus is driven by the occurrence of increasingly frequent extreme weather events, both natural and human-induced, which have had a significant impact on economic development and business operations. This study examines the impact of extreme weather on corporate IT investment using a sample of 20,224 observations of 3330 Chinese listed firms from 2013 to 2022. The findings indicate that there is a correlation between extreme weather and an increase in corporate IT investment. This is attributed to a reduction in the availability of labor due to the adverse effects of extreme weather. Concurrently, the rise in IT investment levels observed in companies as a consequence of extreme weather conditions has the effect of enhancing their resilience to climate risk and improving firm value, which is a crucial factor in the sustainable development of business. This study has theoretical and practical significance for a deeper understanding of the relationship between extreme weather and enterprise IT construction.
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spelling doaj-art-059cc12a94d44952b766ce5455d8b17f2025-08-20T02:10:30ZengSpringer NatureHumanities & Social Sciences Communications2662-99922025-06-0112111310.1057/s41599-025-05275-zExtreme weather, IT investment, and corporate sustainabilityPeinan Ji0Linke Guo1Xiangbin Yan2Lianchao Yu3School of Management, Lanzhou UniversitySchool of Management, Lanzhou UniversitySchool of Business, Guangdong University of Foreign StudiesSchool of Management, Lanzhou UniversityAbstract The capacity of businesses to withstand the impacts of extreme weather has become a subject of concern in both theoretical and practical terms. This growing focus is driven by the occurrence of increasingly frequent extreme weather events, both natural and human-induced, which have had a significant impact on economic development and business operations. This study examines the impact of extreme weather on corporate IT investment using a sample of 20,224 observations of 3330 Chinese listed firms from 2013 to 2022. The findings indicate that there is a correlation between extreme weather and an increase in corporate IT investment. This is attributed to a reduction in the availability of labor due to the adverse effects of extreme weather. Concurrently, the rise in IT investment levels observed in companies as a consequence of extreme weather conditions has the effect of enhancing their resilience to climate risk and improving firm value, which is a crucial factor in the sustainable development of business. This study has theoretical and practical significance for a deeper understanding of the relationship between extreme weather and enterprise IT construction.https://doi.org/10.1057/s41599-025-05275-z
spellingShingle Peinan Ji
Linke Guo
Xiangbin Yan
Lianchao Yu
Extreme weather, IT investment, and corporate sustainability
Humanities & Social Sciences Communications
title Extreme weather, IT investment, and corporate sustainability
title_full Extreme weather, IT investment, and corporate sustainability
title_fullStr Extreme weather, IT investment, and corporate sustainability
title_full_unstemmed Extreme weather, IT investment, and corporate sustainability
title_short Extreme weather, IT investment, and corporate sustainability
title_sort extreme weather it investment and corporate sustainability
url https://doi.org/10.1057/s41599-025-05275-z
work_keys_str_mv AT peinanji extremeweatheritinvestmentandcorporatesustainability
AT linkeguo extremeweatheritinvestmentandcorporatesustainability
AT xiangbinyan extremeweatheritinvestmentandcorporatesustainability
AT lianchaoyu extremeweatheritinvestmentandcorporatesustainability